Israel Model Will Not Work in India

While we do need a government that supports entrepreneurship I am not sure the Israel model of the government providing eighty percent of the funds that a start up requires is the answer.

In India it will lead to favoritism, cronyism and corruption.

Those of us who have been entrepreneurs for twenty years or longer (since before 1991) all know what it took to get funding from nationalized banks – how many of those loan disbursements were done purely on merit and how many had other considerations.

The entrepreneurial ecosystem is Darwinian – survival of the fittest. And fittest does not mean those who are the best at extracting money from the government. It means those who deliver the best products and services at the lowest cost – basically those whom the customer prefers.